Medexus is a “Strong Buy”, Raymond James says

Following a key product update, Raymond James analyst Michael W. Freeman remains bullish on Medexus Pharmaceuticals (Medexus Pharmaceuticals Stock Quote, Chart, News, Analysts, Financials TSX:MDP).

On April 7, MDP issued a press release on the commercialization progress of GRAFAPEX™ (Treosulfan ). Treosulfan is a chemotherapy drug primarily used as a conditioning agent before hematopoietic stem cell transplantation (HSCT), especially in patients with hematologic malignancies or certain genetic disorders. It belongs to the class of alkylating agents and works by interfering with DNA replication and cell division, leading to the death of rapidly dividing cells, such as cancer cells.

“We have made good progress already, in the handful of weeks since commercial launch,” CEO Ken d’Entremont said. “The rate of formulary inclusion will be a key driver of GRAFAPEX™ performance over the coming quarters. We have sold product to 16 unique institutions, and we expect that we will achieve broad formulary coverage for GRAFAPEX™ as we continue our commercialization efforts. This positive initial response supports our expectation that GRAFAPEX™ will be accretive to quarterly operating cash flows by fiscal Q4 2026.”

Freeman says the news is clearly positive for Medexus.

“Taken together, we see the rapid addition of GRAFAPEX to national payor and institutional formularies, the near-immediate inclusion of GRAFAPEX in key clinical practice guidelines, and the large volume of clinical publications focused on GRAFAPEX as a manifestation of the drug’s significant pent-up demand, which, we believe, will translate into material revenue escalation in the coming quarters,” the analyst said. The early months of a launch are critical to a drug’s long-term sales performance; to our eye, MDP is executing this launch very well: ahead of schedule and at target pricing.”

In a research update to clients April 7, Freeman maintained his “Strong Buy” rating and 12-month price target of $8.00 on MDP.